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The only municipally owned long distance railroad in the United States could be a thing of the past in the near future.
When voters across the Buckeye State head to the polls on November 4, the eyes of the railroad and corporate worlds will be on the Queen City of Cincinnati. Up for debate is whether the city should sell the Cincinnati Southern Railway to Norfolk Southern for $1.6 Billion.
The Cincinnati Southern may not be a name familiar to most railfans but perhaps you’ve heard of the Cincinnati, New Orleans and Texas Pacific (CNO&TP), which has leased operations on the Cincinnati Southern since 1881. The CNO&TP is currently a subsidiary of Norfolk Southern.
NS is seeking to purchase the assets of Cincinnati Southern from Cincinnati to Chattanooga, Tennessee from the city of Cincinnati. It already extended its lease of the road which was set to expire in 2026. Regardless of the outcome of the election, trains will continue to operate and no operational changes are expected.
Under the current lease, NS pays the city of Cincinnati about $25 million per year. The City says that if NS buys their railroad it will earn double that amount from the reinvestment of that money in to a trust and will only spent the money on critical infrastructure maintenance.
Should the proposal be approved by the voters, the agreement with the City of Cincinnati will see NS pay out the $1.6 Billion in full in early 2024.
This story will be updated upon the results of the vote being finalized.